Latest news with #ChrisOShea
Yahoo
2 days ago
- Business
- Yahoo
British Gas owner mulls mini-nuke challenge to Rolls-Royce
The owner of British Gas is considering investing in mini nuclear power plants in the UK as it seeks to cash in on burgeoning demand for the technology. Centrica is in early talks with the Government about a potential future deal that could see the energy giant participate in the development of so-called small modular reactors (SMRs). It comes after Ed Miliband, the Energy Secretary, last month announced billions of pounds in funding for SMRs, which will form part of a new 'golden age' for atomic energy. Rolls-Royce, the Derby-based engineering giant has been picked to build the UK's first SMRs which are expected to come online in the mid-2030s, providing crucial 'baseload' power to Britain's electricity grid. Chris O'Shea, the chief executive of Centrica, said the company would be 'very happy to invest more in nuclear'. Earlier this week, Centrica announced it would take a 15pc stake in the nuclear plant Sizewell C in Suffolk. When asked if further investment could apply to SMRs, Mr O'Shea said: 'I don't see why not. It will depend on the return rate and if the risk profile is right. 'SMRs are still five years away at best. But we've looked at some of the work that Rolls has done and what some of the overseas SMR companies have done. There's some really interesting technology.' Success in US Centrica's interest in SMRs has been buoyed by the recent progress of the technology in the US, where the government recently announced plans to invest $900m (£670m) in the sector. The global SMR market is projected to be worth as much as £500bn by 2050, according to the International Energy Agency, as countries race to hit net zero targets. Centrica's interest in nuclear will serve as a boost to Labour's energy strategy just days after the company backed Sizewell C. By taking a significant stake in the £38bn project alongside Canadian investment fund La Caisse and Amber Infrastructure, Sizewell C has finally secured approval for construction. Once built, the Suffolk nuclear plant will have a capacity of about 3.2 gigawatts, enough to power 6m homes for at least 60 years. After announcing Centrica's investment earlier this month, Mr O'Shea said: 'The UK needs more reliable, affordable, zero carbon electricity, and Sizewell C will be critical to supporting the country's energy system for many decades to come. 'This isn't just an investment in a new power station – it's an investment in Britain's energy independence, our net zero journey, and thousands of high-quality jobs across the country.' Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Telegraph
2 days ago
- Business
- Telegraph
British Gas owner explores building mini nuclear power plants
The owner of British Gas is considering investing in mini nuclear power plants in the UK as it seeks to cash in on burgeoning demand for the technology. Centrica is in early talks with the Government about a potential future deal that could see the energy giant participate in the development of so-called small modular reactors (SMRs). It comes after Ed Miliband, the Energy Secretary, last month announced billions of pounds in funding for SMRs, which will form part of a new 'golden age' for atomic energy. Rolls-Royce, the Derby-based engineering giant has been picked to build the UK's first SMRs which are expected to come online in the mid-2030s, providing crucial 'baseload' power to Britain's electricity grid. Chris O'Shea, the chief executive of Centrica, said the company would be 'very happy to invest more in nuclear'. Earlier this week, Centrica announced it would take a 15pc stake in the nuclear plant Sizewell C in Suffolk. When asked if further investment could apply to SMRs, Mr O'Shea said: 'I don't see why not. It will depend on the return rate and if the risk profile is right. 'SMRs are still five years away at best. But we've looked at some of the work that Rolls has done and what some of the overseas SMR companies have done. There's some really interesting technology.' Success in US Centrica's interest in SMRs has been buoyed by the recent progress of the technology in the US, where the government recently announced plans to invest $900m (£670m) in the sector. The global SMR market is projected to be worth as much as £500bn by 2050, according to the International Energy Agency, as countries race to hit net zero targets. Centrica's interest in nuclear will serve as a boost to Labour's energy strategy just days after the company backed Sizewell C. By taking a significant stake in the £38bn project alongside Canadian investment fund La Caisse and Amber Infrastructure, Sizewell C has finally secured approval for construction. Once built, the Suffolk nuclear plant will have a capacity of about 3.2 gigawatts, enough to power 6m homes for at least 60 years. After announcing Centrica's investment earlier this month, Mr O'Shea said: 'The UK needs more reliable, affordable, zero carbon electricity, and Sizewell C will be critical to supporting the country's energy system for many decades to come. 'This isn't just an investment in a new power station – it's an investment in Britain's energy independence, our net zero journey, and thousands of high-quality jobs across the country.'
Yahoo
5 days ago
- Business
- Yahoo
Ban Octopus from taking on new customers, says British Gas
The owner of British Gas has called for rival Octopus Energy to be banned from taking on new customers amid an industry spat over new cash requirement rules. Chris O'Shea, the chief executive of Centrica, claimed new financial resiliency requirements were not being properly enforced as he accused the regulator Ofgem of 'criminal' double standards. He said suppliers who were not meeting the new capital rules already should be prevented from accepting new customers until they do so amid fears they may pose a 'systemic risk'. This would include Octopus, which overtook British Gas to become the UK's biggest supplier of gas and electricity in January. Mr O'Shea insisted his comments were not 'sour grapes', but about ensuring regulatory rules were 'fair and evenly applied'. He said: 'You can have a look at Octopus Energy's accounts yourself, and you can see that the shortfall is over £1bn. 'So you've got to ask yourself – why do they not do what we've done? That's all we think. We think that when the regulator brings out rules that they should equally apply them.' He also lashed out at Ofgem for presiding over a 'multi-tier system' and accused the regulator of already costing consumers more than £100 through its bungled handling of the 2021-22 energy crisis. Mr O'Shea added: 'They're increasing the chance of systemic failure in the market. 'And that cost billions of pounds years ago, and Ofgem's fingerprints were all over that. 'I think it is criminal that they are sitting in a situation where that thing could happen again.' On Thursday, Octopus said it was not in breach of Ofgem's cash rules. A spokesman said: 'This is yet more naked self-interest from British Gas. They would do well to obsess about their customers rather than their rivals. 'We fully comply with Ofgem's rules and our resilience meant we not only thrived through the energy crisis but bailed out Bulb – saving British billpayers billions.' A spokesman for the regulator also stressed that the rules allowed for companies to agree a plan to reach the capital buffers over time. The rules introduced by Ofgem this year require energy companies to keep cash in the bank as a safety net, in case customers can't pay. It imposes a capital 'floor' of zero pounds per customer, meaning suppliers should not be running on negative capital, and tells suppliers to aim for £115 per customer as the ideal amount. Three energy suppliers have so far failed to hit the new requirements, which came into force in April. Octopus, which supplies more than 7m households, confirmed it was one of them but said it had agreed a path to compliance with the regulator. Tomato, a much smaller provider with only 12,000 customers, has also failed to meet the requirements. It was banned from taking on new customers in April amid concerns about its multimillion-pound debt pile. The third energy company not meeting the rules has not been publicly confirmed. 'Outrageous' Ofgem Mr O'Shea lashed out against Ofgem, arguing that suppliers that had not met the requirements should be prevented from growing. He said the case of Rebel Energy, which went bust with 90,000 customers before being taken over by British Gas, underlined the need for the rules. Mr O'Shea added: 'They gave suppliers just over two years to meet that. And most suppliers did. 'But there were three that didn't ... They have recently stopped a supplier called Tomato from taking on new customers. But they haven't stopped the others that haven't met this from taking on new customers. And we think that is outrageous. 'We think that Ofgem are not applying their own rules consistently, and they're creating multi-tier regulation.' It marks the latest twist in the long-running battle between British Gas and Octopus. Mr O'Shea and Greg Jackson, the founder and chief executive of Octopus, have previously clashed over issues such as zonal electricity pricing. On Thursday, Ofgem rejected suggestions that it was not enforcing its own rules properly. A spokesman said the regulations meant companies must either meet the capital buffer requirements or have an agreed plan in place to meet them within a set period of time. A spokesman for Ofgem said: 'Our financial resilience controls are clear that where a supplier is not meeting the capital target but has a credible and agreed plan in place, that is not a breach of the rules. 'Capitalisation plans come with restrictions and controls. We expect suppliers to deliver on those plans and adhere to their restrictions and are monitoring closely.' Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more. Sign in to access your portfolio
The Guardian
5 days ago
- Business
- The Guardian
Fears UK gas stockpile to drop for winter as British Gas owner plans sell-off
Britain may have lower gas stockpiles going into the winter after the owner of British Gas indicated it plans to sell its stored gas to help reduce losses at a North Sea gas storage facility. Centrica said the financial losses from its Rough gas storage business were not sustainable, meaning it would aim to sell the existing gas at the site without restocking before winter. The FTSE 100 energy company is lobbying the government to help support the site, which lost £26m in the first half of the year, according to the company's financial results, after making £53m in profit a year ago. The dwindling returns from Centrica's gas storage business, combined with mild weather and falling wholesale energy prices, caused the company's profits to halve from more than £1bn in the first half of last year, to about £500m in the first six months of 2025. Chris O'Shea, Centrica's chief executive, said this year had 'seen more challenging conditions' for British Gas, which made £133m in operating profit in the first half of the year compared with £156m in the same months last year. He also took a swipe at the company's nearest household energy rival, Octopus Energy, for reportedly failing to meet the regulator's financial resilience targets, which were put in place to prevent energy companies from going bankrupt. Octopus is one of three big energy suppliers that have reportedly failed to meet Ofgem's financial thresholds and have been asked to present a plan to the regulator to show how they will meet the rules in the next two years. O'Shea said that it was 'outrageous' and 'criminal' that Ofgem had not stopped Octopus from acquiring new customers until it met the new rules, introduced after scores of suppliers collapsed during the energy crisis. He launched his attack on Octopus months after the supplier, founded by Greg Jackson, toppled British Gas from its position as Britain's biggest home energy provider for the first time in the almost four decades since the industry was privatised. Octopus called O'Shea's comments 'yet more naked self-interest' and suggested that British Gas 'obsess about their customers rather than their rivals'. Its spokesperson added that Octopus complied fully with Ofgem's rules. Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning after newsletter promotion The two chief executives were also on opposing sides of the industry's debate over zonal energy pricing earlier this year: O'Shea cautioned against overhauling Britain's energy market, while Jackson was the most vocal supporter of the plans – which ministers have since been ruled out. O'Shea said that he did not expect a swift response from the government on Centrica's call for financial support for Rough, but the company was able to inject gas into the storage facility for this winter if a resolution was found. Centrica reopened Britain's largest gas storage site in late 2022 amid Europe's energy crisis, when rocketing prices helped make the facility financially attractive. But as European gas market prices cooled Rough has put financial pressure on the company.
The Independent
5 days ago
- Business
- The Independent
Centrica calls for new customer ban on rival Octopus amid row over Ofgem rules
The boss of British Gas owner Centrica has called for rival Octopus to be banned from taking on new customers as it accused the UK's energy watchdog of failing to uphold its own rules. Chief executive Chris O'Shea claimed it was 'criminal' that Ofgem has not stepped in to take action against three firms that are understood to have failed to meet financial resilience targets – with Britain's biggest energy supplier Octopus among them. He demanded that the regulator stops the suppliers from taking on new customers, claiming that Ofgem is not properly enforcing the rule that came into force earlier this year. This could leave the sector at risk of another possible future wave of firms going bust, similar to that seen in the 2021-22 energy crisis, he warned. On announcing half-year results, Mr O'Shea said: 'Ofgem is not applying its own rules. 'They're increasing the risk of systemic failure in the market.' He said it was 'criminal' that Ofgem is putting the industry in a 'situation where that could happen again'. 'It's simply about protecting customers and asking the regulator to enforce its own rules,' he added. Ofgem has not revealed which suppliers have failed the test, but Octopus – which supplies more than seven million households – has confirmed it did not meet the targets for capital adequacy by the April 1 deadline. It said it has, however, agreed a plan with Ofgem to reach the target, which means it is not in breach of the rules. An Octopus Energy spokesperson said: 'This is yet more naked self-interest from British Gas. 'They would do well to obsess about their customers rather than their rivals. They added: 'We fully comply with Ofgem's rules and our resilience meant we not only thrived through the energy crisis but bailed out Bulb – saving British billpayers billions.' Ofgem also confirmed that firms that have agreed a plan to meet resilience targets are not breaching its rules and therefore do not need to have sanctions put on them, such as being banned from taking on new customers. A spokesperson for Ofgem said: 'Our financial resilience controls are clear that where a supplier is not meeting the capital target but has a credible and agreed plan in place that is not a breach of the rules. 'Capitalisation plans come with restrictions and controls. We expect suppliers to deliver on those plans and adhere to their restrictions and are monitoring closely.'
